BuyingMay 2, 2026

First-Time Home Buyer Programs in Canada — 2026 Guide

From the FHSA to provincial land transfer tax rebates, here's every government program available to help first-time buyers in Canada reduce upfront costs and get into the market sooner.

Saving for a down payment remains one of the biggest barriers to homeownership in Canada, with nearly 30% of first-time buyers relying on financial help from family. To ease these costs, federal and provincial governments offer several programs — savings tools, tax relief, and rebates — that can collectively provide over $100,000 in support for eligible buyers.

Federal Programs at a Glance

First Home Savings Account (FHSA)

$40,000 lifetime per person ($80,000 per couple)

Combines tax-free growth with tax-deductible contributions

No repayment required; funds can transfer to RRSP/RRIF if unused

RRSP Home Buyers' Plan (HBP)

$60,000 per individual

Tax-free RRSP withdrawal for home purchase

Must repay over 15 years; grace period for withdrawals made by end of 2025

Land Transfer Tax Rebate

ON: $4,000 · BC: $8,000 · PEI: $2,000 · Toronto: $4,475

Rebate on provincial and/or municipal land transfer tax

Only available in select provinces/cities; eligibility rules apply

First-Time Home Buyers' Tax Credit (HBTC)

$1,500 (15% of $10,000)

Reduces tax payable on legal/closing costs

Non-refundable; credit can be split between partners, but max remains $10,000

GST Exemption on New Builds

Up to $50,000 in savings (on $1M home)

Removes 5% GST on new or substantially renovated homes

Bill C-4 passed Senate — awaiting final approval

First Home Savings Account (FHSA)

Introduced in April 2023, the FHSA is a tax-free savings vehicle that combines features from both TFSAs and RRSPs. Contributions are tax-deductible and withdrawals used for a qualifying home purchase are also tax-free — with no repayment required.

$8,000

Annual Contribution Limit

$40,000

Lifetime Limit (per person)

$80,000

Per Couple (combined)

Unused contribution room carries forward. The account can remain open for up to 15 years, or until the end of the year you buy your first home. If you don't end up buying, savings can be transferred to your RRSP or RRIF without tax penalties.

RRSP Home Buyers' Plan (HBP)

The HBP lets first-time home buyers withdraw up to $60,000 from their RRSP to use toward a down payment, without paying taxes on the withdrawal. Normally, taking money out of your RRSP before retirement would be taxed as income — the HBP offers an exception for qualifying home purchases.

Key eligibility requirements:

Must not have owned a home or lived in a spouse's home within the last four years
Must plan to live in the new home as your primary residence
RRSP funds must have been in your account for at least 90 days before withdrawal
Withdrawn funds must be repaid to your RRSP over 15 years

If you made your first withdrawal between January 1, 2022 and December 31, 2025, you get a three-year grace period and start repaying in year five. Missing a required repayment adds that amount to your taxable income for that year.

First-Time Home Buyers' Tax Credit (HBTC)

The HBTC helps offset upfront costs such as legal fees, home inspections, and closing costs. Eligible buyers can claim up to $10,000 on their tax return for a qualifying home. Since it's a non-refundable credit, the amount is multiplied by the lowest federal tax rate (15%), reducing your income tax payable by up to $1,500.

Enter the amount on Line 31270 of your tax return. If buying with another eligible person, you can split the credit — but the combined total cannot exceed $10,000.

GST Exemption on Newly Constructed Homes

The federal government has proposed new GST relief under Bill C-4. Eligible first-time buyers could receive a full rebate of the 5% GST on new homes priced up to $1 million, with the rebate gradually reduced for homes priced between $1 million and $1.5 million. This could reduce upfront costs by up to $50,000.

Bill C-4 has passed the Senate and is awaiting final approval before becoming law. Check with your mortgage broker for the latest status.

Provincial Programs

Most first-time home buyer programs are at the federal level, but several provinces have their own incentives. Here's a summary by province.

Nova Scotia

Allows eligible buyers to purchase with just 2% down payment (vs. standard 5%) on homes up to $570,000 in HRM/East Hants and $500,000 elsewhere.

Alberta

No traditional land transfer tax. Buyers only pay small title registration fees, reducing closing costs compared to most other provinces.

British Columbia

First Time Home Buyers' Program provides full or partial exemption from property transfer tax. Max rebate: $8,000.

Ontario

Land Transfer Tax Refund of up to $4,000 for eligible first-time home buyers. Toronto adds a municipal rebate of up to $4,475.

Quebec

Provincial first-time home buyer tax credit of up to $1,400. Montréal offers a lump-sum payment of up to $15,000 for new homes.

Prince Edward Island

Full rebate of land transfer tax if the property's purchase price or assessed value is $200,000 or less. Max: $2,000.

Saskatchewan

Non-refundable tax credit equal to 10.5% of up to $10,000, for a maximum benefit of $1,050.

Newfoundland & Labrador

A grant for 50% of legal closing costs, plus a repayable loan equal to up to 5% of the purchase price.

How Buyers Combine Programs

Many first-time buyers use multiple programs together because each addresses a different stage of the process. Here's an example for a first-time buyer purchasing an $800,000 home in Toronto:

FHSA savings

$40,000

RRSP HBP withdrawal

$60,000

Ontario land transfer tax rebate

up to $4,000

Toronto municipal LTT rebate

up to $4,475

First-Time Home Buyers' Tax Credit

up to $1,500

Total potential support$100,000+

Frequently Asked Questions

How do I qualify as a first-time home buyer in Canada?

You must be a Canadian resident aged 18 or older, and you (or your spouse/common-law partner) must not have owned and lived in a home in the current or previous four calendar years. You must also intend to live in the home as your primary residence.

How much do first-time home buyers have to put down in Canada?

Homes under $500,000: minimum 5% down. Homes between $500,000 and $1,499,999: 5% on the first $500,000 and 10% on the remaining amount. Homes $1,500,000 or more: minimum 20% down.

FHSA vs HBP — which is better for saving?

The FHSA is generally better because contributions are tax-deductible and withdrawals for a home purchase are tax-free with no repayment required. The HBP allows up to $60,000 from your RRSP but must be repaid over 15 years. Many buyers use both together to maximize their down payment.

How much does mortgage insurance cost for first-time buyers?

CMHC insurance is required when you put down less than 20%. The premium is 4.20% for a 5–9.99% down payment, 3.30% for 10–14.99%, and 3.00% for 15–19.99%. Mortgage default insurance is not available for homes priced over $1.5 million.

Can newcomers to Canada access first-time buyer programs?

Yes. Newcomers can access most of the same programs as other Canadians. Lenders will require proof of income, employment history, and immigration status. Building a Canadian credit history and budgeting for closing costs (1.5–4% of purchase price) are key steps.

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